China tight soy supply to ease after late-Nov -survey

BEIJING, Nov 5 - Chinese soy crushers expect supply from the United States to increase from late November, easing current tightness, after U.S. exporters accelerated cargo loading, according to an official survey.

China has already bought more than 15 million tonnes of U.S soybeans and further purchases would be for shipments after February, the China National Grain and Oils Information Centre (CNGOIC) said.

The soyoil market ticked up on healthy demand. Some market participants were expecting soyoil demand to pick up, taking over market share of palmoil and expensive rapeseed oil.

Cold weather in most parts of China led to a reduction of blending of cheap palmoil in the production of edible oils, which would lower its market share.

Soymeal supply remained tight amid more crusher shutdowns in coastal areas, supporting prices already at the highest level this year. But more soy imports later this month could boost supply and pressure prices <0#ASSOYMEAL-CN>, the CNGOIC said.

The corn market stayed strong, supported by delayed sales by farmers and Beijing's pledge to continue stockpiling the crop. More purchases for inventories among feed mills and processors in the north and south also lent support to prices.

Corn supply to markets in southwest Sichuan and other areas was tight and it will take longer for large volumes to be delivered there. Consumers in Guangdong in the south also expect prices to remain at high levels.

The wheat market remained strong, although sales of flour were flat. The bidding volume at weekly government auctions was 150,000 tonnes lower this week, indicating inactive purchases by mills.

Short-grained rice weakened as increased supply from government stock sales and new harvest pressured prices.

The centre provided the following data:

Nov 4 Oct 28 Oct 21

Soybean 50.0 51.3 50.0

Soymeal 44.5 46.8 47.5

Soyoil 50.0 48.3 48.3

Corn 51.2 50.2 48.1

Wheat 52.4 51.9 51.4

Rice 51.1 51.7 52.2

Notes: A reading below 50.0 indicates that participants are bearish, a reading of 50.0 indicates they are neutral and a reading above 50.0 indicates they are bullish.

Source: Marketing Monitoring Division, CNGOIC.

Note: The indexes are based on data collected from 400 market participants, including storage companies, oilseed processors and traders in China's 17 major producing and consuming provinces.

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